KLANG, April 22 — Mah Sing Group Bhd aims to list its glove manufacturing and trading arm, Mah Sing Healthcare Sdn Bhd, on the Hong Kong Stock Exchange within five years.
Founder and group managing director Tan Sri Leong Hoy Kum said the company wanted to drive value creation for its stakeholders.
“We are committed to being a long-term player and deliver greater value to our shareholders, as well as strive to be one of the prominent glove manufacturers in the industry.
“We are also exploring the possibility of listing our manufacturing division separately from the group to further unlock its value,” he said.
Executive director corporate and investment Datuk Steven Ng Poh Seng said Mah Sing was eyeing the Hong Kong market because the capitalisation of companies there was almost 15 times more than that of Bursa Malaysia.
“In terms of trading volume, it is almost 20 times more and it is also easier to have business contacts and do more mergers and acquisitions, as that is an international market,” he said during a Mah Sing Healthcare media briefing in Kapar, near here, today.
At the event, Mah Sing announced the conclusion of the testing and commissioning of its first two glove production lines at its first glove manufacturing factory here.
Operations are expected to start next month and the company anticipates the first shipment of gloves to be delivered in the next two months.
Leong said the glove manufacturing venture was part of Mah Sing’s plan to strengthen and expand its manufacturing division by venturing into the resilient, export-oriented healthcare sector.
“This will complement the group’s existing property division as the property market is cyclical and focused more on the domestic market,” he said.
According to him, Mah Sing is on track to see another four production lines operational in the second quarter of 2021, followed by another six in the third quarter.
“These 12 lines are under phase one of the group’s glove manufacturing business, which is capable of producing 38,000 pieces of gloves per hour per line.
“This is expected to produce a maximum capacity of up to 3.68 billion pieces of gloves per annum,” said Leong.
He said the group was also allocating two to five per cent of its revenue for research and development (R&D) because the lines needed to be innovated.
“There are many types of gloves catering for different needs so we need R&D to continuously improve as product development is crucial for the future growth of the healthcare business,” he added.